In Ethiopia rapid urbanization is the product of socio economic development. As a result urbanrnpopulations have been growing in an alarming rate. This situation mainly aggravated by therntwo major features: rural-urban migration and natural increase of the population. Due to theserndemographic changes, pressure put on urban centers in which residents hardly get quality andrnefficient services. To tackle down such urban problems, the GoE has establishedrndecentralization policy that aimed to transfer powers, responsibilities and resources from therncentral government to regional, zonal, and Wereda levels of administration. This research hasrngiven emphasis on education and health service delivery in Debermarkos town case. In thisrntown basic services provision intricate with social problems: inadequate and poor quality ofrnservices, less accountability and transparency, insignificant number of professionals, lowrninstitutional capacity and minimum public participation in planning, monitoring and decisionrnmaking process. But these poor conditions of service providers of had not been assessed orrnstudied (i.e. academically); it couldnâ€™t be identified, determined, evaluated and recognized thernhindrance for effective implementation of decentralization at the district level. The researchrnused qualitative and quantitative data. This study has assessed the local service providersâ€™rnperformance in line to quality indicators and the governance values indicators: accountability,rntransparency and community involvement in the improvement and provision of services. Fromrnthe findings, it concluded that that decentralization obviously shown improvement in servicerndelivery particularly in schoolsâ€™ and health centersâ€™ service delivery activities: servicernproviders could perform their duties with autonomy, improve quality and efficient servicesrndelivery. However, administrative constraints: clarity of responsibility, accountability, openrninformation flows, and participation have made the services provisions inadequate. The paperrnsuggests that public service providers should be participatory, transparent (free access torninformation), empowered to decide administrative issues autonomously, accountable to therncommunity, dynamic to identify community interest and should include community input inrnstrategic planning and decision making process in the public service providers.rnKey words: decentralization, autonomy, accountability, transparent, participation, social service:rneducation service, health service